TransCanada Awarded Additional US$400-Million Natural Gas Pipeline Project in Mexico

TransCanada Corp.'s Mexican subsidiary, Transportadora de Gas Natural del Noroeste, was awarded the contract to build, own and operate the El Oro-to-Mazatlan Pipeline (Mazatlan Pipeline) in Mexico, following a successful bid to the Comisión Federal de Electricidad (CFE), Mexico’s federal power company.  This is the second pipeline project in Mexico awarded to TransCanada in a week.

Calgary-based TransCanada will invest approximately $400 million in the El Oro-to-Mazatlan Pipeline (Mazatlan Pipeline)  which will begin at El Oro and end in Mazatlan, in the state of Sinaloa. The 24-inch diameter pipeline will be approximately 413 kilometres (257 miles) long and have contracted capacity of 202 million cubic feet a day. The pipeline is expected to be in service in the fourth quarter of 2016. It will interconnect with the El Encino-to-Topolobampo Pipeline (Topolobampo Pipeline) that TransCanada was awarded the contract to build, own and operate last week at an estimated cost of US$1.0 billion. Construction of the two new pipelines is supported by 25-year natural gas transportation service contracts with the CFE.

“We are pleased to be working with the government of Mexico on new natural gas infrastructure that will bring its cleaner-burning natural gas to businesses and residents,” said Russ Girling, TransCanada’s president and chief executive officer. “These new projects build on our experience developing safe and reliable pipelines in Mexico and across North America.”

TransCanada built, owns and operates the Guadalajara and Tamazunchale natural gas pipelines in central Mexico and will soon break ground on a Tamazunchale Pipeline Extension.

Source: TransCanada